CFTC Won’t Prosecute Ex-Citigroup Traders Over ‘Spoofing’

Three former traders admitted to market manipulation in 2011 and 2012

Three former Citigroup Inc. traders struck nonprosecution agreements with the Commodity Futures Trading Commission thanks to their cooperation in a larger investigation of “spoofing” in U.S. Treasury markets, the CFTC said Thursday.

Jeremy Lao, Daniel Liao and Shlomo Salant admitted to engaging in market manipulation in 2011 and 2012, but the agency said it decided to shield them from prosecution because of their “substantial...